The What’s Next? box in chapter 10, “Bits and bytes need distribution, too” describes how digital products require many of the same regrouping activities as physical goods. Sean Parker (best known for starting Napster and later as the first president of Facebook) has developed a new product (Screening Room), which would “allow people to watch movies at home on the same day they make their big-screen debuts.” The Screening Room is shaking up Hollywood which is used to a gradual evolution in distribution channels. Most movies play in theaters (where consumers pay relatively higher prices) for their first few months, before moving to [Continue Reading …]
As you know from chapter 9, identifying and developing new-product ideas — and effective strategies to go with them — can be key to a firm’s success and survival. So what do you do if your main product is a sports drink first developed 50 years ago by a team of scientists at the University of Florida after a request from the football coach (the football team is nicknamed the Gators — hence the name Gatorade)? After years of focusing on new flavors and packaging, Gatorade is using technology to personalize its contribution to athletic performance. Read more about Gatorade’s “smart cap” [Continue Reading …]
Marketing practices — and laws that govern those practices — are always changing. Chapter 8 discusses food product labels. Recently the Food and Drug Administration made changes to the nutrition facts label that appears on the side of packaged foods. The new label reflects the latest scientific information on how foods — in particular sugar — contribute to an unhealthy diet. For full details, we refer you straight to the U.S. Food and Drug Administration website, “Changes to the Nutrition Facts Label” (May 20, 2016). Review the press release at the FDA website (link above). List three changes to the [Continue Reading …]
Mary Meeker is one of the most well-known and well-respected tech gurus. Every year Meeker presents her highly anticipated “Internet Trends Report.” While the 213 slide deck included all kinds of insights about the Internet (and you are encouraged to review it), part of the presentation was particularly critical of online advertising. As you know from chapter 15, advertisers are following people’s “attention” which has moved from TV to online and particularly to mobile devices. Yet advertisers are still struggling to figure out how to break through and grab customer’s attention. Read more about it in “Mary Meeker is right – most online [Continue Reading …]
One example of the experimental method discussed in chapter 7 is an A/B test. You can read about a real-life example of this in “Google Tested 3 Versions of This Honey Maid Ad to See Which Worked Best Online” (Adweek, April 13, 2016). Google compared :15, :30, and 2:17 versions of an ad for Honey Maid. After reading the article, figure out how the ad follows each stage of the book’s “five-step scientific approach to the marketing research process” (see Exhibit 7-3). Provide answers to these questions: 1) What is the problem? 2) What are some examples of a situation [Continue Reading …]
As we know from chapter 6, organizational customers are different as compared to consumers. The chapter notes that “most purchasing managers start with an Internet search when they need to identify new suppliers, better ways to meet needs, or information to improve decisions.” Yet as noted in this article, “Stop Treating B2B Customers Like Digital Novices,” (Harvard Business Review, May 10, 2016) many companies that sell to B2B customers have yet to figure out how to take advantage of the web. Review the text book’s discussion of Exhibit 6-4, the Model of Organizational Buying. Now think about how the ideas [Continue Reading …]
According to “Here’s how millennials could change health care” (USA Today, February 7, 2016) the health care needs of millennials differ from those of the generations that precede them (generation X. baby boomers, and senior citizens – see chapter 3 for discussion of different generations). Review the influences on the consumer decision process in chapter 5 (see Exhibit 5-2). From reading the article or drawing on personal observations, identify how at least one factor in each category (economic needs, psychological variables, social influences, culture and ethnicity, and purchase situation) could influences how a millennial consumer choose and consumes health care.
Demographic data supports the notion that the rich keep getting richer; the top 1% of American households controlling more than 40% of the country’s wealth. That is up from less than 30% just 20 years ago. Luxury goods makers and service providers have responded to these changes. Many are segmenting the market and targeting the wealthiest “one percent” with exceptional quality and/or service. “In an Age of Privilege, Not Everyone Is in the Same Boat,” (New York Times, April 21, 2016) describes these trends and how it is playing out in the cruise business. Using concepts from chapter 4, name [Continue Reading …]